Eddie Lampert’s RBS Partners Buys Netflix, Dumps Auto Zone Stake

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Hedge fund manager Edward Lampert of RBS Partners reported his stock-holdings to the Securities and Exchanges Commission for the third quarter of 2012. Based on its 13f filing, RBS Partners, the firm’s portfolio is worth approximately $5.567 billion.

Eddie Lampert’s RBS Partners Buys Netflix, Dumps Auto Zone Stake

Lampert’s top holdings during the third quarter include Sears Holdings Corporation (NASDAQ:SHLD), which represents 42.14 percent of his portfolio. He owns 42,274,142 shares in the company with an estimated value of $2.345 billion. Lampert serves as chairman of Sears.

Earlier in October, we reported that it could earn $446 million in gross proceeds after the expiration of rights offerings that would trigger the split of Sears Hometown ad outlet business. The company indicated during that time that it might extend its offering subject to the approval of the board of directors.

During the third quarter, RBS Partners bought 704, 381 shares of Netflix, Inc. (NASDAQ:NFLX) worth $38, 346,501. The stock represents 0.69 percent in the hedge fund’s portfolio. The shares of Netflix are trading at around $79.78 per share (closing price on Thursday). The management of Netflix implemented a “poison pill plan” against activist investor Carl Icahn who recently acquired almost 10 percent stake in the company. Icahn is pushing for changes in the company, and he is encouraging shareholders to support his proposal to sell the company. He criticized the company’s poison pill plan as an example of poor corporate governance. According to him, he is prepared for a war against Netflix.

Lampert reduced his stakes in Sears Holdings Corporation (NASDAQ:SHLD) by 722,489 shares, iStar Financial Inc (NYSE:SFI) by 492,077 shares, Capital One Financial Corp. (NYSE:COF) by 1, 383,491 shares, The Gap Inc. (NYSE:GPS) by 9,869,037 shares, and Auto Zone (NYSE:AZO) by 533,850, which was once a fairly large holding for the fund.

He sold his entire stakes in CIT Group (NYSE:CIT) 661,495 shares; Seagate Technology PLC (NASDAQ:STX) 477,700 shares; and Avon Products, Inc (NYSE:AVP) 145,922 shares.

Lampert’s also owns 43,063,910 shares in AutoNation, Inc. (NYSE:AN) worth $2,098,950,862. The stock accounts 37.70 percent in his portfolio. He also owns 12, 083,481 shares of Genworth Financial Inc (NYSE:GNW) and 1,678, 319 shares of Orchard Supply Hardware Stores Corp (NASDAQ:OSH). He did not change his positions in these companies during the third quarter.

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